Liquidity premium
"Liquidity premium can be expressed as a fixed percentage of asset reference portfolio spread over risk-free rates and an additional constant adjustment", can you provide a numeric example?
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"Liquidity premium can be expressed as a fixed percentage of asset reference portfolio spread over risk-free rates and an additional constant adjustment", can you provide a numeric example?
Comments
Have you read section 4.5 of the discount rate paper? I don't think a numerical example will help much here. It's just adding a spread to a constant which is judgmentally selected. The numbers are arbitrary